By: Pat Prescott
Published: Jun 29, 2021

MySpace Sale Marks Worst Investment

MySpace has been up for sale by News Corp and has sold to Specific Media. AllThingsD’s Kara Swisher it sold for $35 million. News Corp bought it for $580 million in 2005.

The company is apparently in a rush to complete an acquisition deal by Thursday, its fiscal year-end. The media giant probably doesn’t want MySpace to blemish its 2012 financial records. As part of the deal, Swisher says MySpace’s staff of 400 will be cut in half, in a memo sent to employees, MySpace CEO Mike Jones made note of additional “restructuring initiatives” while also announcing that he’s departing the company after a two-month transition period.

MySpace was purchased by News Corp. in 2005 for a $580 million as a way to help drive traffic to Fox’s TV and media efforts. According to Swisher. The company’s revenue peaked at over $900 million in 2008. News Corp. might also retain a small minority stake in the company.

MySpace became the most popular social networking site in the United States in June 2006, a position that it held throughout 2007 until 2008. However, by April 2008, according to comScore, the social networking site was overtaken internationally by its main competitor, Facebook, based on monthly unique visitors. Since then the site has declined steadily and parent News Corp has attempted to sell it.


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